Mortgage rates continue at their lows for the year, and it has some market watchers scratching their heads. The economy continues to chug along at a reasonable clip, and central bankers are dialing back stimulus programs, signaling they think the growth is self-sustaining. This should give rates a lift.

Instead, we have a confluence of news and events that has markets increasingly on edge. For weeks now we’ve had US political uncertainty. Congress is back from vacation, and it has a huge to-do list for Sep, including preventing a government shutdown. Given its inability to get any major legislation passed this year, markets are understandably nervous, and legislative sausage-grinding will keep them that way.

North Korea hit the headlines again this week. The intractable nature of that situation and the more strident attitude of the Trump administration will help bond purchases, keeping downward pressure on rates.

Harvey and now Irma are unsettling factors. While they shouldn’t derail the economy, the storms impart an emotional cost that leaves everyone feeling a little more vulnerable.

The fear is that the persistence of these factors could erode consumer and business confidence, leading to a weaker economy. That would lead to lower rates, but for an unwelcome reason.

The one scheduled event this week is the European Central Bank meeting. The ECB is expected to discuss curtailing its stimulus program at the meeting, and an announcement to that effect could pressure rates a little. However, it may have a hard time overcoming the factors pushing the other way.